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CS Executive · Economic, Commercial and Intellectual Property Laws · Intellectual Property Rights

Ravi and Sunita are registered co-proprietors of a patent, with no agreement between them. Ravi grants a licence under the patent to Delta Ltd. without telling Sunita. What is the legal position under the Patents Act, 1970?

The licence should not have been granted without Sunita's consent. Where there is no contrary agreement, registered co-owners of a patent cannot grant a licence, or assign a share, unless the other co-owners consent. Paying her part of the fees does not cure this.

  1. AThe licence is permitted because each co-owner can license independently
  2. BThe licence is permitted if Ravi pays Sunita half the fees
  3. CThe licence should not have been granted without Sunita's consentCorrect
  4. DThe licence is valid if the Controller is informed afterwards

Explanation

Section 50(3) provides that, subject to any agreement in force, a licence shall not be granted by one co-owner except with the consent of the other co-owners. Sharing the fees or informing the Controller later does not substitute for consent.

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